Not by exposure alone: ESBU eliminates the root causes of shadow schemes

 Countering shadow schemes must start with their causes, not their consequences. This is precisely what the Economic Security Bureau of Ukraine focuses on.

This was stated by ESBU Director Oleksandr Tsyvinskyi during a meeting of the Verkhovna Rada Committee on Finance, Taxation, and Customs Policy.

“Our task is not only to expose individual offenses. It is critical to eliminate the root causes and mechanisms that allow shadow schemes to function. It is this approach that enables us to achieve systemic changes, reduce the level of economic de-shadowing, and ensure fair rules of the game for business,” noted Oleksandr Tsyvinskyi

One example of this approach was the work to counter the illegal fuel market. Thanks to a comprehensive, targeted effort on this issue, more than 95% of illegal gas stations ceased operations. As a result, part of the shadow segment transitioned into the legal sector, which secured additional revenues of approximately UAH 1.5–2 billion.

Another result of this systemic work was the dismantling of one of the largest conversion centers, with a turnover of approximately UAH 18 billion, which utilized the documentation of transactions involving fuels and lubricants.

A separate focus area remains countering the practice of business splitting, which in recent years has become a typical model for certain sectors of the economy. To address this, new operational algorithms are being implemented, with the key emphasis placed on the recovery of damages and shutting down the functioning of the schemes themselves. Currently, the ESBU has six successful cases in this area.

The ESBU emphasizes that legal business is a partner of the state; therefore, one of the key working principles remains communication with the market and creating conditions for businesses to voluntarily exit the shadow economy.